Warren Buffett’s Berkshire Hathaway has recently sold another 9.5 million Bank of America shares, reducing its stake in the bank below the important regulatory threshold of 10 percent.
The latest sale, disclosed in a regulatory filing with the U.S. Securities and Exchange Commission on Oct. 10, amounted to around $382 million. This move brings the total value of Bank of America stock sold by Buffett’s company in a selling spree that began in July to approximately $10 billion.
Berkshire’s stake in Bank of America now stands at 775 million shares, valued at roughly $31 billion, representing a 9.99 percent stake in the second-largest bank in the United States. By falling below the 10 percent threshold, Berkshire is now able to report any future sales in its quarterly filings instead of immediately after each transaction.
Buffett and Berkshire have not disclosed the reasons behind the ongoing selloff, which began about three months ago. In a previous sale in September, Bank of America’s CEO expressed surprise.
Bank of America CEO Brian Moynihan, speaking at a Barclays event on Sept. 10, mentioned that he was unsure of the reasons behind Buffett’s sell-off of the bank’s shares, acknowledging Buffett’s positive impact on the company.
Analysts have speculated that Buffett’s sell-off may be driven by profit-taking while stock prices are high, rather than economic concerns. This move could also be aimed at avoiding regulatory scrutiny by staying below the 10% reporting threshold.
The sell-off of Bank of America shares comes amid a bullish run in U.S. stocks, with major indices reaching record highs. Positive earnings reports from big banks have boosted investor sentiment and reinforced optimism about the economy.
Overall, Berkshire’s divestment in Bank of America reflects Buffett’s strategic investment decisions and ongoing portfolio adjustments in response to market conditions.
Jack Phillips and Reuters contributed to this report.
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